This country note briefly summarizesinformation relevant to both climate change and agriculturein Panama, with focus on policy developments (includingaction plans and programs) and institutional make-up. Likemost countries in Latin America, Panama has submitted onenational communication to the United Nations FrameworkConvention on Climate Change (UNFCCC) with a second oneunder preparation. Land use change and forestry are by farthe largest contributors to green house gas (GHG) emissionsin the country. The emission reduction potential of thesector is large, but not sufficiently explored. Panamacounts with only five Clean Development Mechanism (CDM)projects, none of which are in the agricultural sector. Itis estimated that Central America produces less than 0.5percent of global carbon emissions, but it is one the mostvulnerable regions to climate change related impacts on theplanet. Agriculture is highly vulnerable to climatevariability and weather extremes, this coupled with problemsof land degradation in the country. A greater emphasis onreducing soil degradation, reforestation and developing andapplying adequate insurance mechanisms can be placed forbetter management of public resources in light of naturaldisasters in the agriculture sector.